On August 28, Valero Energy (VLO) stock closed at $72.76, a fall of 12.8% since it announced its second-quarter earnings results on July 25.
Valero’s stock performance
Currently, Valero stock is trading at a discount of 40.1% to its 52-week high of $121.38. The stock is trading at a premium of 5.74% to its 52-week low of $68.81.
Year-to-date, Valero stock has fallen 3.0%. The stock has returned -13.7% in the trailing-one-month period and -39.6% in the trailing-12-month period. The company’s market cap is $30.2 billion.
Analysts’ recommendations on Valero stock
Overall, analysts favor a “buy” rating on Valero. Among the 20 analysts that cover Valero, 85% give it a “buy” rating, while 15% give it a “hold.” No analysts recommend a “sell” rating.
Currently, analysts have a 12-month target price of $101.41 on VLO stock. On August 28, the company was trading at a discount of 39.4% to analysts’ 12-month target price. The stock’s median target price was $100.00 on that date.
Valero stock’s technical levels
Based on its closing price on August 28, Valero stock was trading 5.8% below its 20-day moving average of $77.25, 10.0% below its 50-day moving average of $80.85, and 10.8% below its 100-day moving average of $81.61. On the upside, the company’s immediate key resistance lies near $73.89, while $71.31 could act as an immediate key support level on a daily basis.
Valero’s 14-day relative strength index (or RSI) score is 36, which could be approaching oversold territory. An RSI score lower than 30 indicates that a stock could be oversold and investors could take it as a “buy” signal.
In the trading session on August 28, Valero stock closed near its lower Bollinger Band level of $71.45. The Bollinger Band value indicates that the stock is oversold. Investors could take this value as a “buy” signal.
In the second quarter, Valero’s adjusted EPS of $1.51 surpassed analysts’ estimate of $1.37 by 10.2%. However, its adjusted earnings per share were 29.8% lower than its EPS of $2.15 in the second quarter of 2018.
The company beat its earnings estimates for the past 13 quarters. On July 25, Reuters reported that Valero beat its second-quarter earnings estimates mainly due to “a rebound in gasoline prices.”
Valero posted revenue of $28.93 billion in the second quarter, beating the consensus estimate of $24.51 billion by 18.0%. However, its top line fell 6.7% year-over-year.